Checkup 2 Flashcards
Government has “_____ _____” on the earnings of a business.
prior claim
Since 1952, the average age of stockholders has _________.
declined
Earnings paid to stockholders are called ________.
dividends
Earnings remaining after paying creditors and taxes do not need to be paid to _________.
stockholders
_________ stock is the stock most desired by investors.
Common
channels shares to investors
stockbroker
corporate owner
stockholder
evidence of ownership
stock certificate
facilitates buying and selling
stock exchange
“fixed” claim on earnings
preferred stock
Corporation boards of directors are elected by ______________.
stockholders
Annual reports of corporations can usually be found in ________ or _______ libraries.
college; city
A corporation _______ be productive without laborers.
cannot
Owners have a residual _______ on earnings.
claim
To allow earnings to remain in the business is a primary means of _________ the activities of a business.
financing
Three claimants of the earnings of a business are _________, ________, and ________.
creditors; government; owners
Holders of _________ stock have a prior claim on earnings over __________ stock holders.
preferred; common
If a corporation’s earnings increase, _________ on common stock may increase.
dividends
The usual functions of a board of directors are to ____________________________________________ and ________________________________________.
to determine the general policies of the firm; to participate in the hiring of the top-ranking officers.
On the average since 1952, _______ people are investing in corporate stock.
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